Liquidity Management Security, liquidity and return potential for clients

Transcription

1 For Investment Professionals Liquidity Management Security, liquidity and return potential for clients $ Active cash investment solutions, harnessing the expertise of one of the UK s leading investment managers.

2 Liquidity capabilities at Legal & General Investment Management Legal & General Investment Management (LGIM) is one of Europe s largest asset managers and a major global investor, with total assets of 853 billion*. We work with a wide range of global clients, including corporate investors, sovereign wealth funds, fund distributors, retail investors and pension schemes. LGIM has been managing cash assets for over 40 years and is one of the UK s leading providers of liquidity solutions. Throughout this time we have proven our ability to navigate a wide variety of market environments, including several periods of elevated volatility and multiple interest rate cycles. Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including cash, fixed income, equities and commercial property. Our capabilities range from liquidity management to liability-based investment solutions. Liquidity capability milestones LGIM founded 1970 Liquidity (CNAV) Money Markets since 1972 Cash Fund (VNAV) Liquidity (VNAV) Black Monday UK leaves ERM Asian financial crisis Global financial crisis European Sovereign debt crisis Financial market events *As at 30 June 2016, including derivative positions and advisory assets. 2

3 Liquidity Management An award-winning manager We put our clients at the heart of everything we do, and this drives our approach from client service to product development and investment management. The success of this philosophy has been regularly recognised with numerous industry awards. 3

4 Providing security, liquidity and return potential Through our Sterling, Sterling Plus and US Dollar Liquidity Funds, we offer investors an actively managed alternative to short-term bank deposits, which meet the Institutional Money Market Funds Association (IMMFA) Code of Practice. We also offer clients a range of bespoke liquidity solutions. Our Liquidity Funds aim to provide security, liquidity and a competitive return. SECURITY The LGIM Liquidity Funds primary objective is capital preservation Funds are well diversified across a number of highquality issuers and money market instruments All cash fund holdings are researched comprehensively on a global basis by LGIM s credit teams LIQUIDITY Daily dealing with no-lock in periods Daily stress testing to assess our ability to meet large redemptions LGIM employs a liquidity policy which requires the funds to hold a significant proportion of assets that mature within a week The LGIM Sterling Liquidity and LGIM US Dollar Liquidity Funds carry a Standard & Poor s AAAm rating, a Moody s Aaa-mf rating, and a Fitch AAAmmf rating 4

5 COMPETITIVE RETURN POTENTIAL The LGIM Sterling Liquidity Fund has consistently been in the first or second quartile each calendar quarter since launch* As one of the largest investors in the market place, LGIM can obtain competitive market pricing through scale a benefit passed on to our clients COMPETITIVE FEES Transparent fee structure No fees applied by the fund for subscriptions or redemptions *Source: LGIM, as at 30 August 2016, Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up. Captial is at risk. 5

6 The LGIM cash fund range at a glance Absolute Return Bond Funds Variable NAV (VNAV) 3m LIBOR +150/350 Return Liquidity Plus Funds Variable NAV (VNAV) 3m LIBOR +20 T+2 liquidity Liquidity Funds Constant NAV (CNAV) 7 day LIBID +10 T+0 liquidity Duration / credit risk Flexible bespoke solutions Client-specific investment guidelines Liquidity requirements based on clients cashflow projections A dedicated cash management team, portfolio management and relationship manager 6

7 The active LGIM investment approach A key differentiator is our macro-driven thematic investment process. We focus on the long-term outlook and seek to identify market turning points, helping us to target attractive performance across the market cycle. MACRO Macro themes act as an anchor for portfolio construction CREDIT Fundamental research focused on the evolution of credit quality RISK MANAGEMENT Analysis and controls to ensure consistency with portfolio objectives WHY LGIM FOR LIQUIDITY MANAGEMENT? Client focused: We are committed to delivering solutions that help achieve your ultimate investment objectives Emphasis on risk management: We have a strong risk management culture, encompassing credit, interest rate and liquidity risk Cash management expertise: Liquidity management forms a strategic part of LGIM s asset management capability. We dedicate significant resources to liquidity management and fixed income. Over 70 investment professionals feed into our global fixed income investment process and together manage in excess of 126 billion 1. LGIM manages one of the largest sterling liquidity funds 2 and offers tailored liquidity investment solutions to a wide range of international clients 1 As at 30 June LGIM Sterling Liquidity Fund, Fund size 27,360m, Valuation date 31 August

8 CONTACT US FOR MORE INFORMATION Ian Lloyd, Head of Liquidity Distribution +44 (0) Simon Allison, Liquidity Distribution Manager +44 (0) Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Key considerations and risks Investing in financial markets exposes investors to risk. Investing in a broad range of fixed income instruments means adverse moves in interest rates, poor performance by the companies issuing the bonds and exchange rate fluctuations may all lead to losses. Derivatives may also be used for efficient portfolio management as well as investment purposes. The underlying investments will not exactly match changes in the value of a pension scheme s liabilities and schemes will need to be able to generate sufficient return in order to meet liability cashflows. Further details (including relevant risk factors and fund specific risks) are available from your usual LGIM contact. Important Notice This document is produced by Legal & General Investment Management Limited. It is for the exclusive use of the recipient and is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or jurisdiction where distribution, publication, availability or use of this document would be contrary to law or regulation. This document is provided for information purposes only and does not constitute an offer or a recommendation to buy or sell securities or financial instruments. The information in this document does not take into account the specific or future investment objectives, financial or tax situation or particular needs of any recipient. Tax treatment of the subscription, holding and redemption of shares in the fund depends on individual circumstances and may be subject to change. Before making any investment decision, investors are recommended to assess whether this investment is suitable for them in light of their financial knowledge and experience, investment objectives and financial or tax situation and to obtain specific advice from an investment professional. Any investment involves risks, especially with regard to fluctuations in value and return. No guarantee can be given that the fund will achieve its objective, or reach or outperform the performance of its benchmark, if any. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor s reference currency. Historical performance indications and financial market scenarios are no guarantee for current or future performance. Performance indications do not consider charges levied at subscription and/or redemption. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. To ensure quality of service and for the protection of all parties, telephone calls may be recorded Legal & General Investment Management. All rights reserved. No part of this document may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management. M1117 8